NorthMarq Arranges $35M for AFL-CIO
- Jul 14, 2014
Minneapolis—Flux Apartments, a 216-unit Class A asset in the Uptown area of Minneapolis, has been refinanced. NorthMarq Capital’s Minneapolis regional office arranged $35 million for the property on behalf of borrower AFL-CIO Building Investment Trust. Allianz Life Insurance Company of North America provided the loan.
“Northmarq is proud to have worked with BIT and Allianz Real Estate on behalf of Allianz Life on the financing of this Class A apartment in the Uptown area of Minneapolis,” says Patrick Minea, senior vice president/managing director of NorthMarq’s Minneapolis office. “The original development by BIT/Greco was visionary and in a class of its own, this community will be a great investment for years to come.”
RADCO sells 98 units in Metro Atlanta for $5M
Lawrenceville, Ga.—Opportunistic investor and developer The RADCO Cos. has continued its value-add strategy with the sale of Ashford Way, a 98-unit community located in Lawrenceville, Ga. The property was picked up by KENCO Apartment Communities, a local investor, for $5 million, or $51,020 per unit.
Ashford Way was built in 1987 and was acquired by RADCO in December 2012 out of a receivership for $29,000 a unit. A $1 million capital improvement strategy helped boost occupancy from 71 percent at acquisition to 97 percent at sale.
“The sale of Ashford Way is not only a win for us, but also a win for KENCO. I know the company will continue to take the property to the next level,” says Norman Radow, CEO of The RADCO Cos. “We are pleased that we were able to turn the property around by addressing deferred maintenance issues, aging infrastructure problems, and renovating the complex to a higher standard, and we are excited to hand it off to a great operator.”
RADCO has already purchased five properties totaling 1,400 units in 2014. There are another four properties under contract that will close this summer.
Greystone provides $5.9M bridge loan for Colorado asset
Colorado Springs, Colo.—Greystone has provided a $5.9 million bridge loan for a 168-unit community in Colorado Springs. The non-recourse, interest-only bridge loan was originated by Dale Holzer, director and mortgage originator at the firm.
The loan included $4.4 million in financing at close with the remaining $1.5 million to be future funded for property improvements. The fully funded loan amount is 78 percent of total costs, which carries a two-year term with two six-month extensions. Greystone worked with brokers David Pascale and Steve Bram of Los Angeles-based George Smith Partners throughout the loan process.